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What Is It?
Greater Detroit Foreign Trade Zone (GDFTZ) is a
user-funded, Michigan nonprofit corporation that provides competitive advantages to
companies involved in international trade through deferral, reduction or elimination of
U.S. Customs duties. By maximizing the use of foreign trade zones by existing
prospective businesses, GDFTZ helps ensure the competitive marketing position of firms in
both international and domestic markets.
The U.S. Foreign-Trade Zone Program was created by
special legislation of the U.S. Congress in 1934 to stimulate international trade and
create jobs and investment in the U.S. rather than abroad. A foreign trade zone
(FTZ) is an area within the geographical boundary of the United States that is considered
to be outside the Customs territory of the U.S. Companies may bring foreign and
domestic merchandise into zones for storage, testing, relabeling, displaying,
manufacturing, and for the eventual entry into U.S. commerce or for exportation from the
U.S. All Customs duties and federal excise taxes are deferred while merchandise is
in a zone and, in many instances, these duties or taxes can be substantially reduced or
eliminated through zone use. The growth of the foreign trade zone is dramatic- as of
1970, 16 zone project had been approved, while today there are nearly 600 general-purpose
zones and subzones in 49 states.
Greater Detroit Foreign Trade Zone, Inc. is
one of the largest
zone program in the United States in terms of the value of products leaving the zones and
the number of zone sites. In recent years, local firms have annually shipped more
than $34 billion in goods from GDFTZ facilities. These goods have typically included
automobiles, trucks and auto parts. At the same time, more than $2 billion in goods
have been exported annually from the zone.
GDFTZ
among
the largest in the United States
Helps stimulate economic development by
providing businesses with facilities for conducting international trade activities
Is equipped with the latest computerized
inventory and release systems
Provides value-added services, such as
testing, repackaging, sampling, relieving, repairing and subassembly
Offers firms opportunities to cut costs,
reduce duty rates and defer tariffs, and helps keep cash flow and the bottom line healthy
and strong
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